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Once a lien has been filed can you cancel it.

We have filed a lien and the customer wants us to lift the lien and he wants to make payments. If he fails to keep his agreement can we file a new lien

1 reply

Aug 24, 2020

California specifically provides for a document called an "notice of extension of credit" through which the property owner and the lien claimant can agree to some payment schedule, and the time to enforce a lien is extended for a period of time. This way, if the agreement and payment schedules are not complied with, the lien can still be enforced - after it would otherwise have been extinguished for failure to enforce. This is the preferred way to go about implementing a payment plan while keeping the security of a lien claim. Otherwise, it is likely that a secondary lien will either be too late, or not appropriate for other reasons, if the original lien is released.

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